Running head: PROBLEM SOLUTION: GLOBAL COMMUNICATIONS
Problem Solution: Global Communications
Robert R. Miller
University of Phoenix
Problem Solution: Global Communications
The telecommunications industry is quickly evolving into to an industry that is absorbing other once separate technologies. What was once a “plain old telephone service (POT)” (Scenario: Global Communications ¶ 2) company, is now a full service company offering advanced calling features and complete communications solutions including tv, internet and wireless access. Companies that do not employ strategic choice (McShane - Von-Glinow, 2004, pp. 468) will find themselves in a simular situation to Global Communications. A Situation where they will have to employ drastic measures to bring themselves current and competive with the current telecommunications industry.
Situation Analysis
Issue and Opportunity Identification
During a three year period Global Communications suffered a 50% reduction in the value of its stock. There were several factors that contributed to this reduction. Global Communications organizational strategy (McShane - Von-Glinow, 2004, pp. 468) failed to predict adequately the direction of the telecommunications industry. “Organizational strategy refers to the way the organization positions itself in it’s setting in relation to its stakeholders, given the organization’s resources, capabilities, and mission.” (McShane - Von-Glinow, 2004, pp. 468) When the telecommunications industry began to evolve and change, Global Communications also failed to exercise effective strategic choice (McShane - Von-Glinow, 2004, pp. 468). Strategic choice as also defined by McShane and Von-Glinow, “is the idea that an organization interacts with its environment rather than being totally determined by it.” (McShane - Von-Glinow, 2004, pp. 468)
New providers entering into the market initiated new more comprehensive service packages that offered new service lines...